    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book III)]
    [December 11, 2004]
    [Pages 3068-3069]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    December 11, 2004

        Good morning. Social Security is one of the great moral achievements
    of American Government. For almost 70 years, it has kept millions of
    elderly citizens out of poverty and assured young Americans of a more
    secure future.
        The Social Security system is essential, yet it faces a deepening
    long-term problem. While benefits for today's seniors are secure, the
    system is headed towards bankruptcy down the road. If we do not act
    soon, Social Security will not be there for our children and
    grandchildren.
        So this week I met with the bipartisan leadership of Congress and
    asked them to join me in a great cause, preserving the essential promise
    of Social Security for future generations. We must begin by recognizing
    an essential fact, the current Social Security system was created for
    the needs of a different era. Back in 1935, most women did not work
    outside the home and the average life expectancy for American workers
    was less than 60 years. Today, more moms are working and most Americans
    are blessed with longer lives and longer retirements. The world has
    changed, and our Social Security system must change with it.
        Today, Social Security is not a personal savings plan. There is no
    account where your money goes to earn interest. Benefits paid to today's
    retirees come directly from the taxes paid by today's workers. And each
    year there are more retirees taking money out of the system and not
    enough additional workers to support them.

        In the 1950s, there were about 16 workers paying for every Social
    Security beneficiary. Today, there are about three. And eventually,
    there will only be two workers per beneficiary. These changes single a
    looming danger. In the year 2018, for the first time ever, Social
    Security will pay out more in benefits than the Government collects in
    payroll taxes. And once that line into the red has been crossed, the
    shortfalls will grow larger with each passing year. By the time today's
    workers in their mid twenties begin to retire, the system will be
    bankrupt, unless we act to save it.

        A crisis in Social Security can be averted if we in Government take
    our responsibilities seriously and work together today. I came to
    Washington to solve problems, not to pass them on to future Presidents
    and future generations. I campaigned on a promise to reform and preserve
    Social Security, and I intend to keep that promise.

        I have set forth several broad principles to guide our reforms.
    First, nothing will change for those who are receiving Social

    [[Page 3069]]

    Security and for those who are near retirement. Secondly, we must not
    increase payroll taxes, because higher taxes would slow economic growth.
    And we must tap into the power of compound interest, by giving younger
    workers the option to save some of their payroll taxes in a personal
    account, a nest egg they can call their own, which Government cannot
    take away.
        Saving Social Security for future generations will not be easy. If
    it were easy, it would have already been done. There will be costs, yet
    the costs of continued inaction are unacceptable. And the longer we
    wait, the more difficult it will be to fix the system. Saving Social
    Security will require bipartisan cooperation and the courage of leaders
    in both parties. The American people voted for reform in 2004, and now
    they expect us to work together and deliver on our promises. I look
    forward to working with Members of Congress on this important issue.
    Together we will make certain that America meets its duty to our seniors
    and to our children and grandchildren.
        Thank you for listening.

    Note: The address was recorded at 7:50 a.m. on December 10 in the
    Cabinet Room at the White House for broadcast at 10:06 a.m. on December
    11. The transcript was made available by the Office of the Press
    Secretary on December 10 but was embargoed for release until the
    broadcast. The Office of the Press Secretary also released a Spanish
    language transcript of this address.